4 min read

Generative AI: The Catalyst for Ecommerce's Next Growth Cycle

Generative AI


In today's fast-paced digital world, ecommerce has become a critical component of the overall customer experience. With the ever-increasing competition in the market, it is important for businesses to build an enduring competitive advantage and provide their customers a personalized and seamless omnichannel shopping experience. This is where generative AI comes into play. By leveraging the power of artificial intelligence, generative AI is transforming the ecommerce industry and driving its next growth cycle.


Understanding Generative AI

Generative AI is a type of artificial intelligence technology that focuses on creating various types of content, such as text, images, audio, data models, and other synthetic data. It has gained prominence due to its ability to generate new user interfaces that are simple and user-friendly.  The impact of Generative AI is such that it is changing the very definition of work from a human perspective.

Generative AI begins with a prompt that can include text, image, video, music, or any input that the AI system can interpret. The user can manually input this prompt (for example, using GPT-3 to generate text based on the user input) or automated.

Generative AI utilizes various models, including Generative Adversarial Networks (GANs), Variational Autoencoders (VAEs), and Transformer-based models, to analyze large amounts of data and generate new content. These models learn patterns and relationships within the data and can produce entirely new content that would be difficult or impossible for humans to create manually.

A GAN might be trained on a dataset of images and learn to generate new images like the ones in the dataset.

A VAE might be trained on a dataset of faces and learn to generate new faces like the ones in the dataset.

A transformer-based model might be trained on a dataset of product descriptions and learn to generate new descriptions similar in style and content to those in the dataset.

They operate by analyzing large amounts of data and then using that data to generate new content. They learn to find patterns and relationships within the data. Given the learned distribution, the generative AI model is trained to sample new instances. One of the most significant benefits of generative AI is its ability to produce entirely new content that would be difficult or impossible for humans to produce manually. These generative models are powerful tools for generating new content and data.


Advantages of Generative AI in Ecommerce




Product Recommendations

From personalized customer experiences to efficient supply chain management, generative AI quickly changes the game for ecommerce professionals. For example, generative AI can suggest individual product recommendations, generate realistic 3D models, and even write compelling articles.



Personalization at Scale 

It can analyze vast amounts of data. This lets teams understand individual customer preferences and modify marketing campaigns, product recommendations, and customer interactions accordingly. The result is a more targeted and relevant approach that resonates with customers on a deeper level, leading to increased conversions and customer loyalty. 



Automation and Efficiency 

It allows teams to optimize and automate their processes. This drives efficiency and cost savings. With AI algorithms handling tasks such as data analysis, content generation, and campaign optimization, teams can focus their energy on strategic decision-making and creative endeavors. It frees up valuable resources, so teams work more efficiently and allocate their time and effort to areas require human expertise.



Time and Cost Savings

Generative AI needs a remarkably short period of time to accomplish those tasks, which is not something a human being can replicate. This speed is based on various factors, such as the complexity of the data, the size of the dataset, the computing power available and the degree of personalization that is needed. However, with the advancements in hardware and software technologies, generative AI can now process and analyze vast amounts of data very quickly and efficiently and reduce costs.



Agility and Adaptability

It facilitates agility and adaptability. Its algorithms can identify emerging patterns and opportunities, allowing companies to adapt their strategies and stay ahead of competitors swiftly.

Customer Experience01


Improved Customer Experience

It prevents data entry errors, thus eliminating manual errors and data inconsistencies. Mistakes with data entry, data analysis, or customer segmentation lead to costly consequences and have a direct impact on the experience that customers have with our online store.


Going forward with Generative AI applications for Ecommerce Business

As the ecommerce landscape continues to evolve, embracing AI isn't just a technological leap; it's an investment in understanding your customers like never before. Generative AI empowers businesses to analyze browsing patterns, purchase history, and key demographic information to create personalized recommendations and targeted offers in real-time. This presents customers with tailored content that aligns with their interests, elevating the shopping experience. Ecommerce teams can use generative AI to supplement their daily workload and spend less time on repetitive tasks. This frees up their schedules for things like urgent tasks or brainstorming sessions.

Kensium: The Wise Choice for Ecommerce Excellence

Kensium is one of the few ecommerce technology companies in the world that has harnessed Generative AI as a core enabler across several areas of next-generation retail. As a trusted partner, Kensium has implemented and integrated various AI-powered tools, including personalization tools, chatbots, content generation tools, marketing services, fraud mitigation tools, and code generation tools. The company has developed solutions that have become core to many products in ecommerce (Adobe, BigCommerce and Shopify) and ERP (Acumatica). Here is the list of essential ecommerce tools built for top brands:

Personalization Tools Marketing Services
Adobe Product Recommendations HubSpot Marketing Hub
Adobe Live Search Adobe Marketing Cloud
Klevu Google Ads
Algolia Facebook Ads
Dynamic Yield MailChimp
Unbxd Optimizely
Chatbots Fraud Mitigation
Gorgias Kount
Freshchat Riskified
LiveChat Signifyd
Zendesk Answer Bot Bolt
Content Tools Subscription Services
GPT-3 Recurly
WAFs Code Generation / Review tools
Cloudflare WAF GPT-3
Fastly Next-Gen WAF (Signal Sciences)  


With a deep understanding of these tools and their capabilities, Kensium can provide valuable insights and recommendations based on specific business requirements. By partnering with Kensium, businesses can unlock the full potential of generative AI and drive their ecommerce growth to new heights.

In conclusion, generative AI is revolutionizing the ecommerce industry by providing personalized experiences, automating processes, and enhancing customer engagement. Its impact spans various aspects of ecommerce, from personalization and content generation to marketing and supply chain management. By following best practices and leveraging the expertise of trusted partners like Kensium, businesses can harness the power of generative AI and embark on a new era of growth and success in the ecommerce industry.

Our experience with these tools gives us insight into recommending one based on the customer’s requirements. Our partnership with these providers gives us the reach into the roadmap of these tools. 

To learn more about how Kensium can help you with Generative AI, Contact us today.


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